CFA INSTITUTE RESEARCH CHALLENGE 2017 HOSTED BY CFA
CFA INSTITUTE RESEARCH CHALLENGE 2017 HOSTED BY CFA SOCIETY CZECH REPUBLIC Jakub Jurga CFA Institute Research Challenge Coordinator 10 October 2016
2016 RESEARCH CHALLENGE LOCAL 2016 CHALLENGE WINNERS 2
CFA INSTITUTE RESEARCH CHALLENGE UNIVERSITY OF WATERLOO 3
KICK – OFFP ROGRAM KICK OFF MEETING AGENDA 1 CFA Institute 5 2 CFA Society Czech Republic 8 3 CFA Research Challenge Introduction 11 4 CFA Research Challenge Prizes 20 5 CFA Research Challenge Rules 26 6 Where to begin 38 4
1 CFA INSTITUTE 5
ABOUT CFA INSTITUTE CFA Institute ► Global association of investment professionals ► CFA charter – ‘the gold standard among the countless degrees around the world’ (FT) Mission: “To lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society. ” Current situation ► Over 135. 000 members from 150 countries ► Over 164. 000 candidates from 167 countries ► Growing membership in Asia and Europe 6
ABOUT CFA INSTITUTE About CFA Program ► Emphasizes the highest ethical and professional standards ► Strong foundation of real-world investment analysis and skills ► To earn the CFA charter: ► pass of 3 exams ► 4 years of qualified investment work experience ► become a member of CFA Institute ► Only 20% of enrolled candidates complete the program 7
2 CFA SOCIETY CZECH REPUBLIC 8
ABOUT CFA SOCIETY CZECH REPUBLIC CFA Society Czech Republic ► Non-profit organization ► Encourages professional development through the CFA Program and facilitates the open exchange of information and opinions within the investment and financial community through the events that organizes in the Czech Republic ► Founded in May 2002 ► www. czechcfa. cz Members’ profile ► 160 members and 1000 candidates ► Charterholders hold mid/senior executive positions 9
ABOUT CFA SOCIETY CZECH REPUBLIC CFA Society Board of Directors ► Marek Jindra, CFA, FCCA, ASA, President – Partner, EY ► Jan Brázda, CFA, Vice President – Director, Pw. C ► Lubomír Vystavěl, CFA, Advocacy Chair – Senior, Moneta ► Jana Jandová, CFA, Treasury – Senior Manager, Deloitte ► Matěj Turek, CFA, Employer Outreach – Meridon Funds ► Martin Fischer, CFA, Programming Chair - Trader ► Tomáš Hrbáček, CFA, University Outreach – Raiffeisenbank, Relationship manager/Corporate banking Executive Director ► Petra Roberts, CFA – Managing Partner, Roberts & Co. 10
3 CFA RESEARCH CHALLENGE INTRODUCTION 11
RESEARCH CHALLENGE INTRODUCTION CFA Institute Research Challenge - Get involved and help shape the future of finance! 12
CFA INSTITUTE RESEARCH CHALLENGE WHAT IS IT…? The Research Challenge is an international student competition which promotes financial best practices, research skills, stock analysis, financial report writing, and presentation skills in action. Unique opportunity for students ► Learns students how to conduct research, analyze data, write and present a recommendation in stock analysis ► Not based on the performance of a stock Investment professionals involved ► Grading reports and evaluating presentations ► Each team will be assigned a mentor Not just an exercise ► Held to the standard of the CFA Institute Code of Ethics and Standards of Professional Conduct 13
CFA INSTITUTE RESEARCH CHALLENGE HOW IT WORKS…? The Investment Research Challenge 2016 will stretch over the entire winter semester: 1 Registration & Introduction 2 Research, Analysis & Report Writing 3 Presentation § § § Kick off presentation (10 Oct 2016) Teams selected by the participating institutions & student registration (24 Oct 2016) Teams orientation (25 Oct 2016) § § Subject company presentation (26 Oct 2016) Q&A Session/Analyst call (24 Nov 2016) Final Drafts of Written Reports submitted to Industry Mentors (6 Dec 2016) 23: 59 Written Reports Due (21 Dec 2016) § Announcement of the Teams (10) advancing for a final presentation (6 Jan 2017) RC Local Semi-Final & Final in Prague (2 Feb 2017) RC EMEA & Global Final (26 - 28 Apr 2017) § § 14
CFA INSTITUTE RESEARCH CHALLENGE HOW IT WORKS…? Final round Semifinal round Grading WR writing Local Final: 4 best teams Local winner only based on the score from presentation! 2 best teams (50% WR, 50% presentation) Semifinal A: 5 teams based on the WR score Semifinal B: 5 teams based on the WR score Randomly selected into 2 groups 10 teams from 14 universities (1 team per university) 15
CFA INSTITUTE RESEARCH CHALLENGE 2017 RESEARCH CHALLENGE NETWORK CFA Institute Research Challenge provides a global network of 15, 000 students from more than 1, 000 universities. One of the great aspects of this program is its global reach. Global Final AP Regional EMEA Regional Americas Regional ~20 Teams ~30 Teams ~50 Teams 95+ LOCAL LEVEL CHALLENGES 16
CFA INSTITUTE RESEARCH CHALLENGE TARGET COMPANY The target company is one of the leading European producers of nonwoven textiles Moneta Money Bank ► Previously known as GE Money Bank, a. s. , Moneta Money Bank since 1 st of May 2016 ► Leading retail and expanding SME bank in Czech Republic ► 2 primary segments: retail (1, 068, 000 customers) and commercial (69, 000 active customers) with net receivables of CZK 53. 7 bln and CZK 54. 7 bln respectively ► Net profit 1 H 16 of CZK 2, 278 m ► Shares listed on the PSE The subject company will make a presentation to students and provide a Q&A call. Each team will prepare five questions before the Q&A session, and submit these to the Administrator. Students will be allowed to ask the subject company additional questions during the Q&A session. 17
CFA INSTITUTE RESEARCH CHALLENGE BENEFITS FOR STUDENTS ► A public recognition of the Research Challenge ► Great recognition for winners ► Real-life learning experience as an Equity Analyst ► Access and exposure to leading industry professionals ► Professional report and experience to use on resume/CV and job interviews ► Experience presenting to top financial professionals ► Network of over 10, 000 students and volunteers worldwide 18
CFA INSTITUTE RESEARCH CHALLENGE TOP CZECH INVESTMENT PROFESSIONALS INVOLVED Industry Mentors Report Graders Judges – Panelists Lukas Brych, CFA Pavel Cermanek, Meridon Funds Jiri Benes, CFA, 3 TS Capital Daniel Gladis, CFA Jan Hajek, CFA Jan Harrer Marcel Imrisek, CFA Daniel Karpisek, CFA Pavel Kopecek, CFA Matus Kubala, CFA Michal Mares, CFA Katarina Scecinova, CFA Michal Stupavsky, CFA Matej Turek, CFA Michal Durica, CFA, Ia. D investments Martin Fischer, CFA, Trader Miroslav Fliega, CFA, ING Ondrej Klecka, BCG Boris Tomciak, CFA, FInlord Vladimir Valach, CFA, Univerzita Komenskeho Tomas Krsicka, CFA, Accredio Petr Kubovy, ISS Karel Tregler, CFA, PPF Banka Patrick Vyroubal, CFA, CSOB Asset Management 19
4 CFA RESEARCH CHALLENGE PRIZES 20
CFA INSTITUTE RESEARCH CHALLENGE PRIZES FOR WINNING TEAM Czech CFA Society would like to award the winners with the following prizes (1/2): Invitation for the Regional Competitions ► Chance to compete with other local winners in Prague. ► Global Final week of 26 -28 April 2017 in Czech Republic. CFA exam scholarship ► The winning team will obtain Access scholarship for CFA Level 1 exam. Invitation for CFA Forecasting Dinner 2017 ► The Research Challenge award ceremony will be part of the CFA Forecasting Dinner 2017. 21
CFA INSTITUTE RESEARCH CHALLENGE PRIZES FOR FINALISTS & OTHER TEAMS Czech CFA Society would like to award the winners with the following prizes (2/2): Recognition letter from Industry Mentor ► Can be used as an attachement to CV ► Conditioned by cooperation of the team with IM Collection of leading economic journals ► Annual subscription of Ekonom business weekly (finalists) ► Current edition of Ekonom, & HN (others) Job opportunity ► First half of teams (based on WR) may provide their CVs ► CFA Society will contact leading local finance employees for current job openings Other prizes ► Meal voucher to restaurant ► sporty T-shirts (finalists) 22
CFA INSTITUTE RESEARCH CHALLENGE PARTICIPATING INSTITUTIONS – LOCAL ROUND (14) University of Economics, Prague Bohumil Stadnik – Asisstant Professor Institute of Economic Studies, Charles University, Prague Jiří Novák – Deloitte Corporate Chair, University of New York, Prague Tanweer Ali – Lecturer Anglo-American University, Prague Peter Bolcha – Dean Petr Gurny – Assistant Professor (Faculty Advisor) Tomas Bata University, Zlin Jana Vychytilova– Assistant Professor Comenius University in Bratislava – Faculty of Mathematics, Physics and Informatics Zuzana Chladna – Assistant Professor University of Economics, Bratislava Marian Smorada – Vice-Dean CERGE-EI, Prague Yulia Sheveleva – Career Service Manager The School of Management & City University of Seattle, Bratislava Martina Bernhauerova – Academic Office Coordinator Masaryk University, Brno Dagmar Linnertová – Assistent Professor Matej Bel University in Banska Bystrica Jan Sebo – Professor Mendel University, Brno Svatopluk Kapounek – Vice-Dean Technical University of Kosice Marianna Siničáková – Vice-Dean Jozef Glova (Faculty Advisor) – Assistant Professor VSB-TU Technical University, Ostrava Kateřina Kořená – Assistant Professor 23
CFA INSTITUTE RESEARCH CHALLENGE QUALIFYING CONDITIONS The registration process will be administered by each participating institution. Qualifying conditions ► No teams with less than three and more than five members. ► All team members are students of the participating institution ► Teams (max 1 per university) are selected at discretion of the participating institutions ► Participants have to complete the official registration on CFA Institute Research Challenge website untill 2 weeks from the date of Kick-off meeting Teams need to be registered by 24 Oct 2016. To participate on behalf of your university – you must contact your Faculty Advisor/Faculty Contact person!!! ►he/she will inform you about the selection process at your university. 24
CFA INSTITUTE RESEARCH CHALLENGE MATERIAL SUPPORT TO THE STUDENTS TEAMS Travel & accommodation costs for non-PRG students will be reimbursed. Travel expenses ► The ticket has to be on the date of the company and final presentations and the Forecasting dinner. ► Trains allowed in 2 nd class and categories SC/IC/EC/R ► Any type of bus allowed ► Cars will be reimbursed at CZK 5. 00/km, up to the max of the equivalent bus/train tickets for those travelling together Accommodation ►Accommodation will be arranged for the night following the final presentation in rooms for two or three All the costs will be reimbursed in cash right before the final presentation or by bank transfer to the team representatives afterwards. Expenses shall be summarized in excel format and original receipts send to the CFA Coordinator. 25
5 CFA RESEARCH CHALLENGE RULES 26
CFA INSTITUTE RESEARCH CHALLENGE RULES - EXTRACT Teams ► Number of team members can drop below 3 only for extra circumstances (e. g. visa denial, serious illness/injury) ► Students may not have been or currently be employed in a role whose primary duty involves fundamental company analysis; except short-term internships ► CFA Charterholders are not eligible to participate ► Students must disclose any ownership position in the securities of the subject company and any conflict of interest. ► Undergraduate and Graduate students (including Ph. D candidates) are eligible for competition 27
CFA INSTITUTE RESEARCH CHALLENGE RULES - EXTRACT Company ► No contact to target company is allowed after presentation and analyst call. ► The subject company will not provide any non-public information to students. ► Each team will submit five questions for management before the analyst call. ► Students will be allowed to ask additional questions during the Q&A session. 28
CFA INSTITUTE RESEARCH CHALLENGE RULES - EXTRACT Research Process ► Students may use only publicly available information ► All information sources must be mentioned in written reports ► No help of investment professionals is allowed except mentors or faculty advisors ► PLAGIARISM WILL RESULT IN AN IMMEDIATE DISQUALIFICATION. Primary Research ► Teams may contact the Company’s customers, competitors, former employees, and suppliers in conducting research, including surveys, but MUST disclose participation in the CFA RC. ► Mentors, faculty, and subject company may NOT provide material non-public information. 29
CFA INSTITUTE RESEARCH CHALLENGE RULES - EXTRACT Mentors ► Not to exceed 6 hours total ► Any phone call(s) or e-mails are included in these 6 hours ► Mentors will be allowed to review students’ written work and provide comments only ► Mentors will not be allowed to perform any research or write any portion of the report ► Company and its distributors, suppliers, competitors can by reached by mentors except the context of the Challenge ► No participation in the final presentation. ► No material non-public information can be discussed with mentors ► Mentors may not ask any questions to or provide any opinions of the company Faculty Advisor ►Insight and guidance on research methods and tools as taught in academia ► 10 hours maximum of productive time 30
CFA INSTITUTE RESEARCH CHALLENGE RULES - EXTRACT Reports ► Reports and presentations must be the students’ original work ► Reports must conform to the format of the Research Challenge Template ► Reports should not exceed 10 pages, including an investment summary ► Additional charts and graphs will be included in the appendix ► There is no limit to the length of the appendix. Written reports must be submitted by the deadline, otherwise may impose penalties for late submissions. (e. g. point deductions or disqualification) 31
CFA INSTITUTE RESEARCH CHALLENGE RULES - EXTRACT Reports - sample 32
CFA INSTITUTE RESEARCH CHALLENGE RULES - EXTRACT Presentations ► Presentations are in front of the panel of experts selected by the Society ► Each presentation will last 10 minutes with 10 additional minutes of Q&A ► Teams may not use props in their oral presentations ► The presentations and Q&A will be timed, and teams may not exceed the time allotted ► Teams may not conduct practice presentations in front of one or more professionals (e. g. mock judging panels) 33
CFA INSTITUTE RESEARCH CHALLENGE RULES - EXTRACT Ethics resources ►Ethical Standards for Investment Professionals: An Interactive Case-Based Course ►Ethics Course Module 2: Standard II—Integrity of Capital Markets ►Ethics Course Module 3: Standard III—Duties to Clients ►Ethics Course Module 6: Standard VI—Conflicts of Interest ►Ethics Course Module 7: Standard VII—Responsibilities as a CFA Institute Member or CFA Candidate 34
CFA INSTITUTE RESEARCH CHALLENGE RULES - EXTRACT Assessment ► Based on the written reports ► Graders selected by the Society ► Grading is a blind process with unknown identity of the teams ► A winner selection is based on the combined scores for the written reports and the presentations ► The scores will be weighted 50% for the written report and 50% for the oral presentation ► If tied, winner is team with the higher score on the presentation 35
CFA INSTITUTE RESEARCH CHALLENGE REPORT SCORING 36
CFA INSTITUTE RESEARCH CHALLENGE PRESENTATION SCORING 37
6 WHERE TO BEGIN 38
CFA INSTITUTE RESEARCH CHALLENGE WHERE TO BEGIN? ► Visit the CFA Institute Research Challenge websites ► Get in touch with your Faculty Advisor / Research Challenge Coordinator ► He/she has to appoint the team to represent your university in local round ► Register for the competition • Educational materials selected specifically for participants • Videos of past presentations • Past reports from winning teams • You MUST register on the CFA Institute website 39
CFA INSTITUTE RESEARCH CHALLENGE RESOURCES, USEFUL LINKS CFA Institute Research Challenge official websites http: //www. cfainstitute. org/community/challenge/Pages/index. aspx ► Find all necessary information about RC Czech CFA Society Research Challenge websites http: //www. cfasociety. org/czechrepublic/Pages/Research. Challenge. aspx ► Reports and presentations from previous RC winners ► Official Rules, Code of ethics and standards, Expense sheet, Participation agreement ► Educational resources ► Highlights from the 2015 -2016 Global Final 40
CFA INSTITUTE RESEARCH CHALLENGE KEY CONTACTS Universities: VSE Praha – bohumil. stadnik@email. cz FSV UK - novakji@fsv. cuni. cz, CERGE-EI – Yulia. Sheveleva@cerge-ei. cz UNYP – tali@faculty. unyp. cz AAU Praha – peter. bolcha@aauni. edu MU Brno – dagmar. linnertova@seznam. cz MZLU Brno – kapounek@mendelu. cz VSB Ostrava – petr. gurny@vsb. cz, katerina. korena@vsb. cz TBU Zlin – vychytilova@fame. utb. cz CU Bratislava – zuzana. chladna@fmph. uniba. sk UE Bratislava – marian. smorada@euba. sk So. M&CU Bratislava – mbernhauerova@vsm. sk, MB Banska Bystrica - jan. sebo@umb. sk TU of Kosice – marianna. sinicakova@tuke. sk, jozef. glova@tuke. sk Organization and CFA related Qs : Jakub. Jurga@czechcfa. cz, Tomas. Hrbacek@czechcfa. cz , researchchallenge@czechcfa. cz 41 Web pages : www. cfainstitute. org www. czechcfa. cz
CFA INSTITUTE RESEARCH CHALLENGE SUPPORTING COMPANIES Organizing the RC would not be possible without our corporate partners. Local RC Sponsor Society Sponsors Local RC Partners Local Online Media Partners 42
WE ARE LOOKING FORWARD TO SEE YOU IN FINALS Czech CFA Society c/o EY, Marek Jindra Na Florenci 2116/15 110 00 Praha 1 - Nové Město Czech Republic Mobile: +420 603 489 663 E-mail: info@czechcfa. cz www. czechcfa. cz 43
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